gas prices New records were set during the past 11 days in a row The energy supply crisis in the United States. , according to the American Automobile Association (AAA), which noted the extension of prices to record highs as an “unprecedented” pump.
Speaking with Fox News Digital, Andrew Gross, a spokesperson for AAA Inc. , that drivers should expect high prices throughout the summer, especially if the war in Ukraine rages on.
Thursday’s record was 16 cents higher than the previous week, about 50 cents higher than the previous month and $1.55 more than the same time last year.
The national retail price for all 50 states was above $4 a gallon Thursday, according to AAA, with Oklahoma offering the cheapest gas at $4.03 a gallon and California providing the most expensive gas at an average of $6.06.
According to the association, weak supply and increased demand have led to higher gas prices.
“Demand is growing,” Gross told Fox News Digital as he outlined what’s contributing to higher prices.
“Normally at this time of year we feel a little lull. There is often a lull in demand between Spring Break and Memorial Day and we had a little of it about two weeks ago, but then last week, … there was actually an increase, which is unusual Very. I don’t think I’ve seen that before.”
“You have this increased demand as well as the already high oil prices,” he added, noting that “the oil price is stuck in this strange range from $100 a barrel to $110 a barrel.”
“It faces resistance when it hits $110 and then drops again, but then it faces resistance below $100, so it’s in this uncomfortably high region,” Gross continued.
Oil prices fell on Friday as investors worried that slowing global economic growth and tightening central bank monetary policy could affect the recovery in fuel demand.
Brent crude futures for July fell 59 cents to $111.45 a barrel on Friday morning, while the US benchmark for June fell 56 cents to $111.65 on its last day as the next month.
|ribbon||protection||else||they change||they change %|
|USO||United States Petroleum Fund LP||80.58||+1.29||+ 1.63%|
|BNO||United STS BRENT OIL FD LP UNIT||31.86||+0.57||+ 1.82%|
Oil prices peaked above $130 a barrel in March on concern about supply disruptions from Russia, the world’s second-largest exporter.
“To put it in perspective, in August, a barrel of oil was about $64, so we are $40 plus, and that puts a lot of upward pressure because oil is about 60% of the cost of what you pay at the pump and the higher the price of oil, the higher the price of gasoline.”
AAA said that volatile crude oil prices coupled with the dynamics of supply/demand are likely to continue to put upward pressure on gas prices.
“The oil market is a lot like the stock market and we’ve seen the stock market everywhere,” Gross said.
“It’s madness and the oil market operates the same way,” he said, referring to Extreme volatility in the markets lately. “It’s very volatile at the moment and it’s driving the headlines. It doesn’t take much to scare the oil market.”
He noted, “A lot of the downward pressure recently in the oil market has been because of COVID and all of these concerns in China about China shutting down because any kind of economic slowdown in China really affects oil because China is already the biggest consumer of oil in the world.”
“If they start consuming less, that means more oil for everyone else,” Gross continued.
Officials stuck to the “zero COVID” approach in China, but as the number of new cases declined, authorities were easing restrictions, but in a slow and deliberate manner.
Officials announced Thursday that the closed Chinese city of Shanghai will reopen four of its 20 subway lines and dozens of bus lines this weekend as the region slowly relaxes epidemic restrictions that have been in place for more than six weeks.
Gross also referred to the Russian invasion of Ukraine as “the main generator of all these rising prices because the war has just pumped all this weird fluctuations into the market.”
He explained that “there will be much less Russian oil entering the global market” as a result of the war, and stressed that Russian oil is “difficult to replace” given that the country is a major producer of the commodity.
Standard gas prices come in the European Union edges towards Oil sanctions on Russia amid the Kremlin’s invasion of Ukraine. It also comes amid a record rise in inflation, with the Consumer Price Index reaching 8.3% in Aprilhovered near a 40-year high in March.
The European Commission, the executive branch of the European Union, on May 4 proposed a sixth package of war sanctions that would include a ban on oil imports from Russia. The Chairperson of the Commission indicated that securing the consent of all “will not be easy”.
On Monday, a small group of countries continued to oppose the ban on Russian oil imports.
The White House has blamed Russian President Vladimir Putin for the record hike in US gas prices, even coining the increase as “#PutinPriceHike” and vowing that President Biden will do everything in his power to protect Americans from “pain at the pump.”
Biden announced, last month, that Environmental Protection Agency E15 gasoline – gasoline that uses a 15% ethanol blend – will be allowed to be sold across the country this summer. Biden also moved to release 1 million barrels of oil per day from the Strategic Petroleum Reserve for the next six months. The president also called on Congress to make companies pay duties on idle oil wells and unproductive acres of federal land, with the goal of spurring new production.
Gross noted that the administration’s moves would help “a little.”
“It appears that driving habits haven’t changed, so this is something you should be watching for over the next few weeks and months,” he added. “With these high prices, at what point are people going to decide I’m going to stay home or ride a bike.”
“It’s a really fun time now,” he emphasized.
“I think a lot of people are probably taking electric cars more seriously now,” Gross added.
He also noted that Memorial Day weekend will continue to attract millions of drivers despite rising gas prices.
AAA expect 39.2 million people It will travel 50 miles or more from home over the weekend, which is an 8.3% increase from 2021, but still below pre-pandemic levels in 2019 when 42.8 million people traveled by car.
Gross explained that the high cost of gas is likely to “push some travelers out”.
Tyler O’Neill of FOX Business and the Associated Press contributed to this report.